Enci Wang

The high-quality development of China’s green finance is driven by the aims of reaching peak carbon and carbon neutrality, leading to an important impact of emissions trading policies on the profitability and debt burden of China’s listed companies. This paper uses propensity score matching (PSM) and the difference in differences (DID) method to study the impact of carbon emissions trading policies on the profitability and debt burden of listed companies in seven carbon emissions trading pilots from 2010 to 2019. The empirical evidence shows that the implementation of carbon emissions trading policies has increased the profitability and reduced the debt burden of listed companies: (1) Mechanism test shows that this policy can increase the profitability and debt burden of state-owned listed companies by increasing innovation investment. (2) The negative effects of this policy on the profitability and debt burden of state-owned listed companies are more obvious than that of the others. (3) The policy has also significantly reduced the debt burden of competitive companies and the profitability of monopolies. (4) The policy yields a more intense reduction in the debt burden of listed companies in high-carbon emission industries. Finally, this paper suggests that listed companies’ participation in the carbon emissions trading policy be expanded and that monopoly conditions among listed companies are reduced.

In the past few years, China’s air quality, particularly PM2.5 concentrations, has received extensive attention. China is increasingly dependent on imported oil, and the international oil price fluctuations influence the air quality by two paths. A rise in oil prices puts pressure on the economy and reduces energy consumption, which could improve air quality. However, the substitution effect by high oil prices tends to increase the use of environmentally unfriendly energies, which worsens air quality. In this study, the authors employ wavelet analysis to determine how international oil price fluctuations affect PM2.5 concentrations in China. The authors process a sample of 12 typical Chinese cities, which are discretely distributed in the northeast, north, east, central, south, and southwest of China. The results show that in most cities international crude oil prices are positively correlated to the PM2.5 concentrations in the short term (1–4 months) and that the fluctuations in oil prices are usually ahead of the changes of PM2.5 concentrations. It is more pronounced in industrially developed cities such as in Shanghai. An extension of the study to include the country data yields more consistent findings. Empirical analysis indicates that, in the short run, the substitution effect caused by oil price fluctuations exerts a stronger impact on PM2.5 concentrations.